VA awards $18.6M contract for pharmacy staffing, with Citadel Federal Solutions selected

Contract Overview

Contract Amount: $18,624,100 ($18.6M)

Contractor: Citadel Federal Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-02-01

End Date: 2025-09-30

Contract Duration: 241 days

Daily Burn Rate: $77.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: STAFFING FOR PHARMACISTS, PHARMACY TECHNICIANS, AND SHIPPER/PACKERS.

Place of Performance

Location: HINES, COOK County, ILLINOIS, 60141

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $18.6 million to CITADEL FEDERAL SOLUTIONS LLC for work described as: STAFFING FOR PHARMACISTS, PHARMACY TECHNICIANS, AND SHIPPER/PACKERS. Key points: 1. Contract focuses on essential pharmacy support roles, ensuring continuity of services. 2. Sole-source award after exclusion of sources suggests specific capabilities were required. 3. High value indicates significant operational reliance on contracted pharmacy personnel. 4. Fixed-price contract type aims to control costs for the duration of the order. 5. Short duration of the delivery order may indicate a need for immediate staffing or a bridge to a larger contract. 6. Geographic focus on Illinois for this specific order.

Value Assessment

Rating: fair

The contract value of $18.6 million for a period of approximately 8 months appears substantial for staffing services. Benchmarking this against similar contracts for pharmacy support staff across federal agencies is difficult without more granular data on the number of personnel and their specific roles. The firm-fixed-price structure provides cost certainty for the VA, but the value-for-money assessment hinges on the efficiency and quality of the staffing provided by Citadel Federal Solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial intent may have been broader competition, specific circumstances led to the exclusion of other potential bidders. The exact reasons for this exclusion are not detailed, but it implies that only a limited number of sources were considered eligible or capable of meeting the requirements. This approach can sometimes lead to less competitive pricing compared to full and open competition.

Taxpayer Impact: The exclusion of sources limits the potential for competitive bidding, which could result in higher costs for taxpayers than if a wider range of vendors had been allowed to compete.

Public Impact

Veterans receiving pharmacy services at VA facilities in Illinois will benefit from continued staffing. Ensures the availability of pharmacists, pharmacy technicians, and shipper/packers to manage prescription fulfillment and distribution. Supports the operational efficiency of VA pharmacies, potentially reducing wait times for medications. Impacts the healthcare workforce by providing employment opportunities for pharmacy support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition raises concerns about potential overpayment and lack of cost-saving innovation.
The 'exclusion of sources' justification needs further scrutiny to ensure it was truly necessary and not a barrier to fair competition.
Short contract duration might indicate a reactive approach to staffing needs rather than proactive planning.

Positive Signals

Firm-fixed-price contract provides budget certainty for the VA.
Focus on essential pharmacy roles addresses a critical healthcare support function.
Award to an existing federal solutions provider suggests familiarity with government contracting processes.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically addressing the need for specialized personnel in healthcare settings. The market for healthcare support services is substantial, with federal agencies being significant consumers. This contract represents a portion of the VA's broader strategy to ensure adequate staffing for its medical facilities, particularly in pharmacy operations. Comparable spending benchmarks would typically involve analyzing the cost per staff member or the total cost for similar support services across different healthcare providers.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary consideration for this specific award. There is no indication of a small business set-aside or subcontracting plan requirements. This means the contract was not specifically designed to benefit small businesses, and their involvement would likely be incidental if any.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting and program officials. As a delivery order under a larger contract vehicle (implied by 'AW': DELIVERY ORDER), existing oversight mechanisms for that vehicle would apply. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Pharmacy Services
Healthcare Staffing Contracts
Facilities Support Services
Pharmacy Technician Support
Pharmacist Services

Risk Flags

Limited competition due to source exclusion.
Potential for cost overruns if performance is not closely monitored.
Reliance on a single contractor for critical pharmacy support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $18.6 million to CITADEL FEDERAL SOLUTIONS LLC. STAFFING FOR PHARMACISTS, PHARMACY TECHNICIANS, AND SHIPPER/PACKERS.

Who is the contractor on this award?

The obligated recipient is CITADEL FEDERAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2025-02-01. End: 2025-09-30.

What is the specific justification for excluding other sources in this full and open competition?

The justification for 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is critical for understanding the competitive landscape. Typically, this designation implies that while the solicitation was broadly advertised, only a limited number of responsible sources were found to be capable of meeting the agency's requirements. Reasons could include highly specialized technical needs, urgent requirements where only a few vendors could respond in time, or specific performance history requirements. Without the detailed justification document (often called a J&A - Justification and Approval), it's difficult to assess if this exclusion was appropriate and if it unduly limited competition, potentially impacting price and innovation for the VA.

How does the $18.6 million value compare to similar pharmacy staffing contracts awarded by the VA or other agencies?

Benchmarking the $18.6 million award requires detailed comparison points such as the number of full-time equivalents (FTEs) or specific roles (pharmacists, technicians, packers) being filled, the duration of the contract, and the geographic scope. A contract for 8 months covering multiple roles across several facilities would naturally be higher than a short-term contract for a single technician. Preliminary analysis suggests this is a significant sum for an 8-month period, indicating a substantial staffing requirement. A deeper dive into historical VA contracts for similar support services, adjusting for inflation and scope, would be necessary for a precise value-for-money assessment.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The effectiveness and value of this contract are directly tied to the performance metrics established within the contract documents. Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) would likely focus on aspects such as prescription accuracy rates, turnaround times for filling prescriptions, staff availability and punctuality, adherence to VA protocols and regulations, and overall customer satisfaction from clinical staff and patients. The firm-fixed-price nature suggests that meeting these defined performance standards is crucial for Citadel Federal Solutions to achieve profitability, and failure to do so could result in penalties or non-payment.

What is the track record of Citadel Federal Solutions in providing similar pharmacy staffing services to the federal government?

Citadel Federal Solutions has a history of providing various support services to federal agencies. Assessing their specific track record in pharmacy staffing requires reviewing past performance evaluations and contract awards related to this niche. Information on their success in fulfilling similar requirements, managing staff, and meeting performance metrics on previous contracts would be vital. Positive past performance would increase confidence in their ability to deliver on this $18.6 million award, while any documented issues could signal potential risks for the VA.

What is the potential impact of this contract on the broader VA healthcare system's operational efficiency?

This contract directly impacts the operational efficiency of VA pharmacies by ensuring adequate staffing levels for pharmacists, technicians, and support personnel. Consistent and qualified staffing can lead to reduced patient wait times, improved medication management, and better support for clinical healthcare providers. Conversely, any staffing shortages or performance issues from the contractor could disrupt pharmacy operations, potentially affecting patient care and increasing the workload on remaining VA staff. The success of this contract is therefore crucial for maintaining the smooth functioning of VA outpatient and inpatient pharmacy services in the covered region.

Given the short duration (approx. 8 months), is this contract intended as a bridge to a longer-term solution or a recurring need?

The delivery order's duration, from February 1, 2025, to September 30, 2025 (approximately 8 months), suggests it might be a short-term solution. This could indicate several possibilities: it might be a bridge contract to cover a gap while a larger, long-term contract is being procured; it could be to address a temporary surge in demand or a specific project; or it might represent a recurring, short-term need that is re-competed periodically. Understanding the strategic intent behind this short duration is important for assessing the VA's long-term staffing strategy and potential future contract opportunities in this area.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1318 BRIDGE MILL AVE, CANTON, GA, 30114

Business Categories: Category Business, Limited Liability Corporation, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $18,624,100

Exercised Options: $18,624,100

Current Obligation: $18,624,100

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 36C77025D0002

IDV Type: IDC

Timeline